Taxation
Topic
The United States Government issues the IndividualTaxpayer Identification Number (ITIN) that identifies the individual's taxreturn details. The Internal Revenue Service (IRS) gives ITIN numbers to peoplewho are unqualified for Social Security Numbers. It is a nine-digit number thatbegins with "9" and has similar formatting to SSN.
Whether you are an immigrant or non-immigrant in the US, you need to file Federal Tax Returns and have additional payment responsibilities to be fulfilled. All the payment responsibilities must be filed under Internal Revenue Code. This rule is imposed by the United States Internal Revenue Service. To receive the ITIN, the candidates must fill the requirement and federal income tax returns.
Note: Candidates should remember that they cannot file ITIN applications online.
Now, let's understand who uses ITIN in the US.
The ITIN was introduced in 1996. It is only used for filing Federal Tax Returns. Thus, the individuals are not eligible to work or obtain income in the US. They must satisfy other criteria to qualify for employment and income. In addition, ITIN is used by:
● Individuals who do not have access to Social Security Number.
● Real Estate Brokers to allow mortgage plans to unauthorized candidates.
● International investors in the real estate field in the US. Foreign investors require ITIN to file federal and state tax returns for their rental payments.
Let's look at the information IRS extracts from the individual's ITIN.
According to the research conducted by the US government in January 2021, 5.4 Million US residents are issued with ITIN. These people include international residents or non-residents and their spouses or dependents. However, it also states that many people still need to be eligible to obtain SSNs.
● It helps the IRS to discover the person's or business's income tax returns.
● They can process account tax returns.
● The IRS allows individuals to apply for credit or debit cards, seek a loan, and file insurance claims.
● IRS provides tax treaty benefits to the individual with ITIN.
● All the information IRS departments maintain from your ITIN is strict and highly secured. Therefore, hackers cannot access your information.
So, now you know the importance of ITIN and why the IRS requires it. Now, we'll look at the ITIN application process.
To apply for ITIN, applicants should:
● Fill out the W-7 Form. It records your biographical information, tax returns, and ID.
● Additionally, the candidates are required to submit the essential documents and certified copies for identity proof.
● Foreigners must provide their foreign status.
● Now, mail everything to the IRS.
Your original documents will be returned to the primary origin within 14 weeks.
Your Individual Taxpayer Identification Number expires in three years unless used even once. ITIN allows people to cooperate with US laws. The person gets the full advantages that the IRS offers to ITIN holders. Another important aspect is that you can have ITIN if you are ineligible for SSN.
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